Homeowners title insurance protects homeowners from potential financial loss due to defects in a property's title. It's an essential protection that should not be overlooked when purchasing a home.
Yet, in Virginia, even though there are two types of title insurance, only homeowners title insurance is optional. However, your lender makes it mandatory for you to buy lenders title insurance to protect them! Why? A lender's title insurance protects their interests, not yours as a homeowner. If there's a claim against the title, they are covered but not you!
If it's that important to the mortgage lender, then shouldn't it be important to you? Let's look at four ways your homeowner's title insurance protects you.